1. Harry Moser President Reshoring Initiative
Role of Skilled Workforce in Corporate Plant Location Decisions
Harry Moser
President
Reshoring Initiative
MSSC Executive
Briefing 2016

2. Skills and Talent Survey Result Themes
Skills and talent availability are critical to the site selection decision
Skilled crafts and STEM have the greatest shortages
Process manufacturing and advanced manufacturing more affected
Community / technical college and apprenticeship programs can set regions apart in the short-term
Addressing long-term structural gaps starts in the primary education system
Source: 2015 Workforce Skills and Talent Survey:

3. Talent Shortage by Project Type
Source: 2015 Workforce Skills and Talent Survey:

4. Skills/Talent Gap Viewed As More Critical In The US Than EU Or Asia
Is there a skills gap that is affecting client’s ability to find and retain skills / talent?
U.S: 97%
Europe: 62%
Asia: 46%
Source: 2015 Workforce Skills and Talent Survey:

5. Source: 2015 Annual Survey on Site Selection Trends, http://www

6. Workforce/Talent Drivers
Workforce availability and training
Those areas that can develop and sustain evolving skill sets are poised for sustained growth
Haves and have-nots will be determined by the ability to demonstrate abundant, quality, and sustainable skilled/technical workers.
US has to compete across key industries with technical skills that are less easy to outsource (offshore?) (e.g., 2-year degree for manufacturing PLC/CNC positions)
Source: 2015 Annual Survey on Site Selection Trends,

7. Dunwoody’s Machine Tool Technology AAS Degree Program
Minneapolis, MN
Number of June 2012 graduates: 22
Number fully employed in the industry when graduating: 21 (95%)
(Recent BA/BS grads employed fulltime: 47%)
Avg. starting salary: $17.64 per hour (>BA$)
Requests to hire graduates: 450
Complaints from companies: 50

8. Most Career Data is Incomplete

9. Source: How Liberal Arts and Sciences Majors Fare in Employment. 2013
Median earnings for graduates with only baccalaureate degrees ( )
Source: How Liberal Arts and Sciences Majors Fare in Employment. 2013

10. Median Annual Salary of Bachelor’s Graduates
by Field of Major and Age, 1993
TOOL & DIE
Source: National Survey of College Graduates,
NSF/SRS, NTMA, PMA/TMA.
(Data will next be released in ) 10

11. Annual Income/Age 11

12. Tool & Die or English Major? A Million $ Decision
TOOL & DIE CUMULATIVE WEALTH ADVANTAGE
Assumptions:
1. Zero wage inflation
2. Savings = 50% of difference in income
3. Investment return of 7% per year on savings
AGE 12

13. Entrepreneurial Opportunities
BACKGROUND FOUNDED PURCHASED INHERITED UNSPECIFIED TOTAL OWNERS
APPRENTICE
GRADUATE % % % % %
MACHINING TRAINING
BUT NOT APPRENTICE % % % % %
MANUFACTURING
MANAGEMENT % % % % %
BUSINESS MANAGEMENT
BUT NOT MANUFACTURING 4% % % % %
OTHER % % % % %
TOTALS % % % % %
% of Total % % % % %
CONCLUSION: APPRENTICES & MACHINISTS FOUND COMPANIES
SOURCE: NTMA/CHARMILLES OWNER/MANAGER SURVEY. SURVEY DATE: 2001

14. The Industry-Led Reshoring Initiative Provides
Online Library of 3,400 reshoring articles
Statistics from TCO and Library databases
Case Study template for posting cases
Motivation for skilled manufacturing careers
Free Total Cost of Ownership (TCO)* software for:
Companies for sourcing
Suppliers of parts and equipment for selling
Institutions for training
* NIST’s MEPs also offer a TCO system.

15. The Bleeding has Stopped
Manufacturing Jobs/Year
Annual Average
2015
% Change
New Offshoring
~240,000
~60,000
-75%
New Reshoring & FDI
12,000
67,000
+ 400%
Net Jobs Gained
~-220,000 ~0
N/A

16. Objective of Reshoring
Balance the $500 billion trade deficit:
4 million manufacturing jobs
Cut U.S. budget deficit by about 50%
Reduce unemployment about 4 percentage points
Strengthen the middle-class
30% increase in manufacturing
If spread over 20 years: 25% extra annual capital equipment investment
Allow productivity and growth in mfg. employment

17. 1/11/12 Insourcing Forum

18. Local Skilled Workforce Recruitment
Issue
Solution
“Trades” and “vocations” image
Call them “Professions”
“Middle skills”
“Technical Skills”
Manufacturing career image due to offshoring
Industry collect and media report the local reshoring case of the month. Use our Case Studies feature.

19. Take Aways for Institutions
Improve recruitment by:
“Professions”
“Technical skills”
Promoting local reshoring
Promote reshoring to increase local manufacturing
Promote the rate of MSSC credentialing as a metric of skills availability.
Cooperate with EDOs
Seeking groups to implement!